Bank of Ningbo(SZ:002142) Donghai Securities·2025-10-31 11:25Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company reported a revenue of 54.976 billion yuan for the first three quarters of 2025, representing an 8.32% year-over-year increase, and a net profit attributable to shareholders of 22.445 billion yuan, up 8.39% year-over-year [1] - As of the end of September, total assets reached 3.58 trillion yuan, a 16.65% increase year-over-year, with a non-performing loan (NPL) ratio of 0.76% (unchanged quarter-over-quarter) and a provision coverage ratio of 375.92% (up 1.76 percentage points quarter-over-quarter) [1] - The net interest margin (NIM) for Q2 was 1.76%, down 5.32 basis points year-over-year [1] Summary by Sections Company Overview - The company has shown strong performance in the first three quarters of 2025, with significant growth in both revenue and net profit [1] - Total assets have increased significantly, indicating robust growth and stability [1] Loan and Investment Performance - Corporate loans and financial investments have grown rapidly, while personal loan growth remains constrained by demand [1] - The company has maintained a competitive advantage in corporate lending, with new loan issuance significantly higher than in previous years [1] - Financial investments have accelerated, reflecting a strategic shift towards government bonds amid weaker credit demand [1] Interest Margin and Income - The NIM has continued to narrow due to repricing effects, but deposit repricing has alleviated some pressure [1] - The company has seen a significant improvement in intermediary business income, driven by a strong performance in wealth and asset management [1] Asset Quality and Risk Management - The overall NPL ratio remains low at 0.76%, with a slight increase in the proportion of loans under watch [1] - The company has adopted a prudent approach to impairment provisioning, reflecting a cautious stance in a challenging credit environment [1] Earnings Forecast and Valuation - The company has adjusted its earnings forecast, expecting revenues of 72.084 billion yuan, 78.368 billion yuan, and 87.376 billion yuan for 2025, 2026, and 2027 respectively [6] - The projected net profit for the same years is 29.536 billion yuan, 32.468 billion yuan, and 35.976 billion yuan [6] - The price-to-book (PB) ratio is expected to decrease to 0.79, 0.70, and 0.62 over the next three years, indicating potential undervaluation [8]